Make $100 PER DAY - The Ultimate Order Block Trading Strategy

Summary

This video introduces a simple yet effective trading strategy based on the order block concept, aimed at making $100 a day on Bybit. The strategy involves identifying key trading zones on higher time frames (daily) and confirming reversals using lower time frames (1-hour and 5-minute). Traders can maximize profits by entering trades when price taps into these order block zones. The video also emphasizes managing risk with appropriate stop-loss placement, confirming market direction, and executing trades at optimal points. The presenter shares valuable tips for both beginners and experienced traders using Bybit and similar platforms.

Takeaways

• 😀 The Order Block strategy helps identify market zones where institutional players have made large buy/sell orders, causing significant price movement.
• 😀 To get started, create a Bybit account, deposit funds, and select the appropriate derivatives trading section (USDT Perpetual or Inverse Perpetual).
• 😀 Using the higher time frame (daily), identify key support and resistance levels, fair value gaps, and significant market zones where price could reverse.
• 😀 The strategy uses a 3-step approach: analyze higher time frames for key zones, use the 1-hour chart for market direction, and confirm reversals with lower time frames (e.g., 5 minutes).
• 😀 The daily time frame provides an overview of the market structure, showing how much room the price has before reaching key levels.
• 😀 Look for opposite-colored candles on higher time frames, as they often indicate strong support or resistance zones.
• 😀 Fair value gaps are areas where big players have left orders, and the market often returns to fill these gaps.
• 😀 Multiple rejections at the same level strengthen the support or resistance, so monitor price action for potential breakouts.
• 😀 To enter a trade, wait for the price to enter an identified order block zone, then zoom into a lower time frame for confirmation.
• 😀 The strategy emphasizes managing risk: set a stop-loss below the order block, take partial profits at a 1:2 risk-to-reward ratio, and adjust positions as new order blocks form.
• 😀 If you're unable to use Bybit, consider alternatives like CoinFlare or Wix for trading.

Q & A

What is the 'order block strategy' mentioned in the video?

The 'order block strategy' is a trading method that focuses on identifying key zones on a chart where institutional players place large buy or sell orders, causing significant market reactions. These zones can act as areas of support, resistance, or price reversal.

What are the first steps to begin trading using this strategy on Bybit?

To start trading, you first need to subscribe to Bybit, create an account, and deposit funds into your account. Then, choose the trading pair and select the order type (limit, market, or conditional), set your leverage (up to 100x), and confirm your order.

Why is using multiple timeframes important in this strategy?

Using multiple timeframes is important because it helps you analyze the market from different perspectives. The daily timeframe is used to identify overall market structure, the 1-hour timeframe helps pinpoint key trading zones, and the 5-minute timeframe is used for confirming entries and exits.

What is the significance of 'fair value gaps' in the strategy?

Fair value gaps indicate areas where institutional players have created imbalances in the market. These gaps often attract the price back to fill the leftover orders, making them key zones for potential price reversals or continued movement.

What are 'liquidity zones' and why are they important?

Liquidity zones are areas on the chart where significant buy or sell orders have been placed, such as equal highs, lows, or multiple rejections. These zones can cause significant price movements and should be watched closely as they may act as support or resistance.

How do you identify 'order blocks' on the chart?

Order blocks are identified by looking for candles or zones that have created significant price movement, often showing imbalances between buying and selling pressure. A candle that creates a fair value gap is considered an order block, as it represents institutional activity.

What should you do when the price enters an 'order block zone'?

When the price enters an order block zone, you should wait for confirmation of a reversal or a change in market direction. This can be observed through patterns such as liquidity sweeps or breaks of market structure. Once confirmed, you can open a position.

What is the role of risk management in this strategy?

Risk management is crucial to minimize losses. This involves setting stop-loss orders, reducing risk on each trade by not risking too much on a single position, and taking profits at predefined levels to lock in gains and avoid larger losses.

How do you confirm a reversal using the 5-minute timeframe?

To confirm a reversal on the 5-minute timeframe, you should look for signs like a liquidity sweep (price breaking below recent lows) or a change in market structure (price breaking above recent highs). These patterns suggest the price might be moving in the opposite direction.

What should be done if the first position hits a stop loss but the market continues to move as expected?

If the first position hits the stop loss but the market continues to move in the expected direction, you should open a new position based on the next order block without closing the initial position. This strategy allows you to catch the price movement while managing risk.